Mod Meters is an organization which is being pioneers in the meters manufacturing industry is aiming at the strategic objectives of expanding the business operations, in terms of establishing their assembly plants in other countries to cater to the global demands for their mechanical and the digital meters that are being produced by Mod Meters.
However, the challenge is that the IT department is bogged with the challenges of low budget allocations and major expectations that are expected from the department. In this research report the focus is upon understanding the key issues related to the problems that are encountered by the IT department in Mod Meters, the key problems that are encountered by the organization, the key issues pertinent to supporting the new initiatives of the organization.
In the global competitive scenario, the dependency of the organizations in terms of having cutting edge information systems to support the business process is being imperative as millions of dollars are spent by the companies in upgrading their IT infrastructure, systems application developments, enterprise systems, and the information management systems that could help them in analytics too. Whereas in the case of Mod Meters, despite of having the IT department and some agile systems in place, there is not much of concrete IT developments and even the allocation of budget to the IT department is also being low; (Elmorshidy, 2013)
In this report the focus is upon understanding how and what is required from Mod Meters to have robust IT environment that could support in winning the organizational objectives. Hence an detailed analysis of the case inputs are carried out to understand the intensity of the issue that has been raised by the CTO in the team meeting about the need for better support from the teams towards equipping IT department for better services.
The case scenario of Mod Meters clearly depicts the fact that despite of having an full fledge IT department and senior level resource engaged to manage the organizational process, the level of budget allocations and the significance provided to the IT systems development in the organization is not being so effective. Unless the organization focuses on developing key factors like the enterprise solutions, improving the IT processes and systems, upgrading the infrastructure, it might be very challenging for the organization whilst of implementing their corporate objectives like expanding in to the other locations. (Beverldge)
The kind of amounts that are spent on the IT systems has been very low when compared to the global IT spends by the organizations. In terms of allocation, as per the inputs from the case scenario, only 2% of the budget is allocated to the IT department, and with such small budgets, establishing the robust IT environment may not be practically feasible for the organizations. (Church, Melanie Gilbert, Kevin Paquet, & Carol Surface, 2002)
The growing business size of Mod Meters and their new strategic objectives require the organization to have sound systems and practices in place and with the existing IT environment of the organization; it might be very complex for the organization to envisage any kind of support systems from the IT departments. (Lester & Thuhang T. Tran, 2008)
The figures that the CTO has represented in the meeting depicts clearly, that major chunk of the existing system are used in maintenance of the existing systems. This envisages two intrinsic factors. One is that the budget spend on the IT departments are not being sufficient and in the other way the old systems that are being used by the organization has become an obsolete and is costing heavy in terms of operating costs. (Elmorshidy, 2013)
If the organization is aiming at developing good strategic initiatives that could support the Mod Meters in achieving its vision, then there is essential need for the organization to ensure that right kind of IT environment is developed which can provide them the leverage of process automation, business analytics and the business process controls and monitoring. (Lester & Thuhang T. Tran, 2008)
Mod Meters should ensure that they improve their technological infrastructure in an effective manner. The key issue which is being a hurdle in the entire process is that the top management like CFO, COO and CEO has to realize the importance of having robust IT infrastructure that could support them in overall development of the organization and in effective process management. (Beverldge)
Hence the focus should be upon evaluating the process and ensure that all the agile systems which are being independent and redundant has to be eliminated and is to be replace with robust enterprise systems. Despite the fact that there are significant costs that are incurred on such systems, in long run, it shall be very resourceful for the organization in improving the process, the quality controls and the overall performance of the organization. (Lester & Thuhang T. Tran, 2008)
Also the other important factor that has to be taken in to consideration by the management is that the role of IT in the strategic implementation is very important and unless the organization takes the inputs from the IT perspectives also towards planning their strategic objectives, then there could be issues of alignment of organizational process, expectations and the support from the IT department. (Church, Melanie Gilbert, Kevin Paquet, & Carol Surface, 2002)
Every division in the organization has its own importance and keeping in view the current trends of global competitive scenario, it is evident that Mod Meters has to upgrade its IT infrastructure, by ensuring that the old systems are replaced with new infrastructure and enterprise systems that could provide the organization significant value in terms of achieving its objectives. (Elmorshidy, 2013)
The key issue is that there is essential need for Mod Meters to focus on sound IT systems and practices that could support in their business functions and ensure that adequate resource and budget allocations are provided to the department and ensure that the IT team is also being part of the organizational strategic planning, in order to understand how the IT process alignment is essential to the strategic objectives intended by the organization. (Beverldge)
Beverldge, C. (n.d.). Alligning IT with Business Strategy. Manchester: National Computing Center.
Church, A. H., Melanie Gilbert, Kevin Paquet, & Carol Surface. (2002). The Role of Technology in Organization Development and Change. Advances in Developing Human Resources, 493-511.
Elmorshidy, A. (2013). Aligning IT With Business Objectives: A Critical Survival And Success Factor In Today’s Business. The Journal of Applied Business Research, 819-828.
Lester, D. L., & Thuhang T. Tran. (2008). Information Technology Capabilities: Suggestions for SME Growth. Institute of Behavioral and Applied Management.